Proceeds from the issue will go into ADB’s ordinary capital resources for use in its non-concessional operations.

The bonds, with a coupon rate of 2.125% per annum payable semiannually and a maturity date of 15 March 2012, were priced at 99.779% to yield 92.25 basis points over the 1.125% US Treasury note due January 2012.

The transaction was lead-managed by Daiwa SMBC, Goldman Sachs, Morgan Stanley and UBS. A syndicate group was also formed consisting of BNP Paribas, Citigroup, Credit Suisse, Deutsche, Dresdner, HSBC, Mitsubishi UFJ Securities, Nomura and RBC Capital Markets.

“We are very satisfied with the transaction and the swift book-building process, particularly amidst a challenging market backdrop," said ADB Treasurer Mikio Kashiwagi. "There was healthy demand from high-quality investors, resulting in an oversubscribed book close to US$1.2 billion."

About 47% of the bonds were placed in Europe, Middle East and Africa, 36% in Asia and 17% in the Americas. By investor types, around 58% were bought by central banks and financial institutions, 24% by funds, asset managers and insurance companies, and 18% by banks.

ADB plans to raise around US$9 billion to US$10 billion in 2009.